REALIGNING PT KRAKATAU ARGO LOGISTICS BUSINESS STRATEGY TO IMPROVE BUSINESS BOTTOM LINE

• Main Author: Putra Dwi Kurniawan, Raditya
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/35811
• Institution: Institut Teknologi Bandung

PT Krakatau Argo Logistics (PT KAL) is a subsidiary of PT Krakatau Bandar Samudera (a subsidiary of PT Krakatau Steel (Tbk), a multimodal transport service company, warehouse management, and loading and unloading. Established in 2013 in Indonesia with an office in Cilegon, Banten. The establishment of PT KAL is primarily intended to support the supply chain of steel products of PT Krakatau Posco through long-term contracts. The year 2015 is considered as a challenging year for PT KAL where world steel price condition decreased causing the evaluation and adjustment of the tariff of service significantly reduced from PT Krakatau Posco to PT KAL. Strategic issues that arise in PT KAL is the decline in revenue and profit from 2015 to 2017. It is important to have a company strategic adjustment in order to ensure business sustainability. The company must consider external and internal factors that influence future business growth through a series of strategic analysis. A series of strategic analysis such as PESTEL analysis, Porter’s five forces analysis, and competitor analysis is conducted to enable the company to take advantage of external opportunities and minimize the impact of potential threats. The internal analysis using Resource-Based View, VRIO, and market industry in the logistics business. The strategic formulation is conducted refer to the external and internal analysis to propose a future appropriate strategy of the company. The implementation of such strategies is done in the short and long term by continuously evaluating to pursue its future 5 years objective of increasing revenue and profitability.